{LONGTERMINVESTORS} Fwd: Morning Market Starter - September 27, 2016

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From: <research@icicibank.com>
Date: Tue, Sep 27, 2016 at 11:16 AM
Subject: Morning Market Starter - September 27, 2016
To: stockdesai@gmail.com

Central Bank watch: European Central Bank (ECB) President Mario Draghi said the U.K. shouldn't be granted any special favours on single-market access during negotiations over its exit from the European Union, stating that "any outcome should ensure that all participants are subject to the same rules". Governor Kuroda said that the central bank stands ready to use all tools necessary to get inflation back to its 2% target, including cutting interest rates further into negative territory. Global market developments: The first U.S. Presidential debate between Presidential hopefuls Ms. Hillary Clinton and Mr. Donald Trump concluded today. Developments in the oil market o Oil prices gained by over 3% yesterday, as OPEC members Nigeria and UAE backed a deal to stabilize oil markets when the group meets tomorrow on the sidelines of the International Energy Forum in Algeria being held between September 26th-28th. o However, the oil minister for Venezuela has sounded a warning that oil prices could tumble below USD 20/bbl if the OPEC members fail to reach a deal. o While Saudi Arabia has reportedly offered its first output cut in eight years, it has imposed the caveat of Iran freezing its output at August levels. In contrast, the Government in Tehran is reluctant to meet Riyadh halfway, as Iran wants to achieve its pre-sanction production levels. Chart: Oil markets remain volatile amid the ongoing talks between key oil producers Global market developments: US new home sales contracted sharply in August at (-)7.6% MoM vs. a prior expansion of 13.8% MoM. Dallas Fed manufacturing activity came in at (-)3.7 in September vs. (-)6.2 earlier. US markets ended in the red yesterday, led by losses in bank shares. Dow Jones and S&P ended down 0.9% each. Asian equities are trading mixed this morning, amid expectations regarding the outcome of the OPEC meeting, which commenced yesterday. Top gainers include Hang Seng (+1.1%), Nikkei (+0.4%) and Kospi (+0.3%). The gains in the former were largely owing to investors gauging Ms. Hillary Clinton performed better at the US Presidential debate, which concluded today. The losses are being led by Australian ASX (-0.7%)vand Shanghai Composite (-0.1%). US Treasuries are trading lower this morning, paring some of its recent gains. The 10Y benchmark yield is hovering at 1.60% levels, as compared to yesterday's close of 1.58%. Global market snapshot Domestic market developments: The Indian Rupee is trading stronger at 66.50 levels vis-a-via the US Dollar (prior: 66.60). Indian Government bonds are trading marginally higher this morning, with the new 10Y benchmark hovering at 6.78% levels. Regards, ICICI Bank Contact: Niharika Tripathi (+91-22) 2653-1414 (extn: 6943) niharika.tripathi@icicibank.com Pradeep Goyal (+91-22) 2653-1414 (extn: 6229) goyal.pradeep@icicibank.com Sumedha Dasgupta (+91-22) 2653-1414 (extn: 7243) sumedha.dasgupta@icicibank.com ​

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CA. Rajesh Desai

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